Higher GeographyHigher GeographyIndustryIndustry

Recent Industrial Change – Recent Industrial Change – ScotlandScotland

Glasgow and the surrounding areaGlasgow and the surrounding area

The 1970s and 1980s saw the The 1970s and 1980s saw the decline of traditional industries in decline of traditional industries in Glasgow.Glasgow.

TaskTask

Discuss the impact of this decline with Discuss the impact of this decline with a partnera partner

Since the mid 1980s…..Since the mid 1980s…..

With the help of government With the help of government financial aid modern industries were financial aid modern industries were encouraged to locate in and around encouraged to locate in and around the citythe city

New factors have affected the New factors have affected the location of these industrieslocation of these industries

State Aid, provided as Regional Aid, can be used to promote the economic development of certain disadvantaged areas within the European Union.

GovernmentGovernment

Firms were attracted into old industrial Firms were attracted into old industrial areas by the offer of financial assistance areas by the offer of financial assistance and incentives from the government e.g.and incentives from the government e.g.

Rent free accomodationRent free accomodation

Grants for new machineryGrants for new machinery

Money subsidies to assist with labour costsMoney subsidies to assist with labour costs

Grants for retraining schemesGrants for retraining schemes

Tax incentives to attract foreign companiesTax incentives to attract foreign companies

Regional Selective Assistance Regional Selective Assistance (RSA)(RSA)

RSA encourages businesses to undertake investment that RSA encourages businesses to undertake investment that will directly result in the creation or safeguarding of jobs in will directly result in the creation or safeguarding of jobs in Scotland. Both indigenous and foreign companies can apply Scotland. Both indigenous and foreign companies can apply with the resulting impact on employment helping to ensure with the resulting impact on employment helping to ensure Scotland’s economy remains globally competitive.Scotland’s economy remains globally competitive.

RSA is a discretionary grant scheme, so there are a number RSA is a discretionary grant scheme, so there are a number of criteria to be met for an application to be successful. The of criteria to be met for an application to be successful. The amount offered is dependant on the size of the business, amount offered is dependant on the size of the business, location of the project and our assessment of how much is location of the project and our assessment of how much is needed for the project go ahead. There are three tiers of needed for the project go ahead. There are three tiers of assisted areas in Scotland reflecting different maximum assisted areas in Scotland reflecting different maximum levels of grant assistance potentially available.levels of grant assistance potentially available.

http://www.scottish-enterprise.com/fund-your-business/rsa.aspxhttp://www.scottish-enterprise.com/fund-your-business/rsa.aspx

Case StudyCase Study

Vertex GroupVertex Group To provide sales and service for Tesco Bank’s To provide sales and service for Tesco Bank’s

mortgage business, 200 permanent jobs are being mortgage business, 200 permanent jobs are being created in Glasgow. The jobs will be based at created in Glasgow. The jobs will be based at Atlantic Quay.Atlantic Quay.

First Minister Alex Salmond said: “Scotland has First Minister Alex Salmond said: “Scotland has established a reputation for financial services established a reputation for financial services excellence and I am delighted that Tesco Bank are excellence and I am delighted that Tesco Bank are creating 200 new jobs in Glasgow through Vertex.creating 200 new jobs in Glasgow through Vertex.

The Scottish Government, Scottish Enterprise and The Scottish Government, Scottish Enterprise and Scottish Development International continue to work Scottish Development International continue to work hard to deliver jobs and investment to communities hard to deliver jobs and investment to communities

across the country.across the country.

TransportTransport

New Industrial Estates were built New Industrial Estates were built next to the M8. Good access is next to the M8. Good access is essential for the factories in these essential for the factories in these estates to bring in raw materials and estates to bring in raw materials and export finished goodsexport finished goods

Good transport links are also Good transport links are also essential for the labour force – most essential for the labour force – most people travel to work in a car so people travel to work in a car so need easy access/parkingneed easy access/parking

Effects of regenerationEffects of regeneration A variety of investors have located in the areaA variety of investors have located in the area Many financial companies are attracted to the Many financial companies are attracted to the

city e.g. Fortis the Belgium banking company and city e.g. Fortis the Belgium banking company and Morgan Stanleys – move to the cities financial Morgan Stanleys – move to the cities financial districtdistrict

• Glasgow will host the 2014 commonwealth games and will host some of the football events in the 2012 Olympics

The riverside has been completely regenerated after the closure of the Ship yards, property developers have bought up land to develop luxury flats and apartments

Glasgow has grown and developed as Glasgow has grown and developed as a tourist destinationa tourist destination

Glasgow has become the retail Glasgow has become the retail capital of Scotland e.g. designer capital of Scotland e.g. designer shops around the Italian Centreshops around the Italian Centre

ActivitiesActivities

1.1. For an industrial concentration you have For an industrial concentration you have studied in the EU, describe and explain studied in the EU, describe and explain the main location factors that influence the main location factors that influence the location of new industrial the location of new industrial developmentdevelopment (8)(8)

2.2. Suggest ways in which the national Suggest ways in which the national government and the EU have helped government and the EU have helped attract new industries to your chosen attract new industries to your chosen areaarea (7)(7)